Author ORCID Identifier

Roy Bahl:

David Sjoquist:

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In the late seventies, the secular decline in reliance on property taxation was expected to continue through this decade. However, the decline of the property tax has slowed, perhaps even halted. Reasons for this are examined and it is found that changes in the growth and allocation of fiscal responsibility did affect the property tax as anticipated, but that other trends did not continue. The implications of federal income tax reform for the property tax is also examined. Although property taxation has become a more expensive way to fund local expenditures, other factors, especially the relative price increase of sales taxation, are likely to soften the impact of tax reform. Finally, possible structural changes in the property tax resulting from tax reform are discussed.


Originally published in Public Budgeting & Financial Management, 2(2), 351-376 (1990).

(c) 1990 by Marcel Dekker, Inc.

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